The adjusting entry for accrued salaries is to
A) debit Salaries Expense; credit Salaries Payable.
B) debit Salaries Expense; credit Cash.
C) debit Salaries Payable; credit Salaries Expense.
D) debit Cash; credit Salaries Expense.

Question

Quizplus · Accepted Answer

When salaries are earned by employees, but have not yet been paid, they are accrued salaries. The adjusting entry for accrued salaries is to debit Salaries Expense (increasing expense) and credit Salaries Payable (creating a liability for the unpaid salaries). Therefore, the correct choice is A. The other choices are incorrect because they either do not account for the liability or debit/credit the wrong accounts.

The Adjusting Entry for Accrued Salaries Is to